Report Reveals New Android Licensing Fees in Europe
- Paul Thurrott
- Oct 19, 2018
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58
Google will comply with the demands of EU antitrust regulators by making Android more expensive. Now we know how much more expensive.
As you may recall, Google announced last week that it would comply with a recent EU ruling by raising the Android licensing fees it charges to hardware makers and wireless carriers, but only in Europe. This response, I noted, was brilliant, as it gets to case the European Commission as the bad guys while it continues its illegal bundling practices.
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But the question, of course, concerns how much Google will charge its partners to do business in Europe. After all, in the cut-throat, low-margin world of hardware devices, even a few cents can make a big difference.
Well, citing “confidential fee schedule documents,” The Verge says it has the answer: Google will charge its partners $2.50 to $40 more per device, depending on its features, and depending on the country, to use Android in Europe.
Yikes.
Countries like the UK, Sweden, Germany, Norway, and the Netherlands will see the highest fees, and devices with higher-end capabilities will likewise require higher fees. According to the publication, Handsets with a pixel density higher than 500 PPI would have to pay a $40 fee to license Google’s apps. 400 to 500 PPI devices would pay a $20 fee, and devices under 400 PPI would pay $10. In some countries, for lower-end phones, the fee can be as little as $2.50 per device, The Verge claims. And tablets are on a different pricing schedule.
Conversation 58 comments
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skane2600
<blockquote><em><a href="#354891">In reply to chrisrpatterson:</a></em></blockquote><p>Well, I don't know about the EU, but certainly the anti-trust actions against Microsoft weren't on behalf of consumers. Competitors drove it so they were the only ones who benefited from it. </p><p>Ironically buying the "victimhood" of companies like Netscape backfired – they paid a lot more for a worthless (by that time) company than they got back in anti-trust suits.</p>
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Bats
<p>Again, I don't blame Google for this.</p><p><br></p><p>This is what happens when you "tax" and/or "regulate" a business. LOL…people don't realize the trickle-down effect and how that indirectly but directly effects them. </p><p>This is how the world works. </p>
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PeterC
<blockquote><em><a href="#354828">In reply to giskemo:</a></em></blockquote><p>But it’s in the trading customs union</p>
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PeterC
<blockquote><em><a href="#354914">In reply to giskemo:</a></em></blockquote><p>I understand, but sadly google are using it as their boundary definition. </p>
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PeterC
<p>So there you have it. Not quite the story some thought it was is it.</p><p><br></p><p>Clearly trying to give their line of pixel phones competitive advantage in terms of price in a desirable market they’re not really a big player in yet. (android is – pixel isn’t). </p><p><br></p><p>Clearly targeting Samsung and Huawei who do have a very big European presence in sales and handset terms.</p><p>Apparently sticking two fingers up to the EU – errr no. Samsung and Huawei via the EU – yes.</p><p><br></p><p>And obviously not abusing their dominant position in Internet search/advertising at all – no the issue of android/play store/search/pre-installed google services is all just a non-issue and the EU is being anti-competitive to us at google. Yeah right Mr Pichai.</p><p><br></p><p>All they hope for now is a big enough public outcry to deliver an outcome that neuters Samsung and Huawei and other manufacturers from going their own way. Hmmm. </p><p><br></p><p>As ive said before, apple will have a field day any which way you look at it. </p>
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PeterC
<blockquote><em><a href="#354893">In reply to MutualCore:</a></em></blockquote><p>I don't think this is about raising money for google to pay apple do you 🙂 </p>
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dontbe evil
<blockquote><em><a href="#354963">In reply to Bob_Shutts:</a></em></blockquote><p><br></p><p>"thanks EU!" – Google after EU lawsuits on windows</p>
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PeterC
<blockquote><em><a href="#354982">In reply to christian.hvid:</a></em></blockquote><p>I think its pretty obvious that its an aggressive strategic move by google to counter Samsung and Huawei who have huge European sales business and stop them taking android and going their own way. Hence the DPI license cost model. google wish to leverage European consumer anger to stop the big Asian/Chinese brands from fragmenting android. Google are protecting the crown jewels of the play store – which has already been demonstrated to be vulnerable with the non-play store release of Fortnite some months back.</p><p><br></p><p>it also plays into googles plans to increase its own brand pixel sales which are pretty meagre in Europe and will benefit in point of sale terms if the other brands decide to go full aggressive on google</p>
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PeterC
<blockquote><em><a href="#354994">In reply to christian.hvid:</a></em></blockquote><p>Well put. The issues of healthcare and automotive are spot on too. we’re seeing more visible moves by the EU to create and establish independent aerospace, security and financial systems. This is part of that narrative and google aren’t happy about it. However due to apples much vocalised data compliance with eu directives I suspect we will see some preferred supplier status on some projects. It’s partly why there’s been the story’s about “Chinese chips in apple servers and why they’re strongly refuting the claims. That’s gonna drive some people nuts.</p>
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dontbe evil
<p>finally… time to pay you (don't) be evil google</p>